The “geopolitical risk has intensified significantly further, to very high levels, with material negative consequences for Israel’s creditworthiness in both the near and longer term”, Moody’s said in an unscheduled announcement. “The intensity of the conflict between Israel and Hezbollah has increased significantly in recent days.”
Israel was downgraded for the second time this year by Moody’s Ratings as the economic costs mount from almost 12 months of fighting in Gaza and an escalating conflict with Hezbollah.
Moody’s cut Israel by two notches to Baa1 from A2, the ratings company said in a statement Friday, leaving the country three steps above non-investment grade. The outlook remains negative.
